Tata Power in transitory phase as non-operating income boosts profitability

Tata Power's net debt to equity ratio improved to 2.26 in the June quarter against 3.10 seen in the same period a year back

Business for private power producer Tata Power is in its transitory phase with the company juggling among a loss-making Mundra power unit, debt reduction and growing its relatively new renewables segment. Amid this, its non-operating income is boosting profitability by contributing more than half to it. 

Analysts are hopeful that the sale of investment will help the company reduce debt while renewables are emerging as the main operating profit growth driver. 

Data from Tata Power’s consolidated financial results for the last financial year shows that other income and exceptional gains combined contributed about 52 per cent to the company’s profit